Original Equipment Manufacturer

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Related to Original Equipment Manufacturer: OEMS, Original design manufacturer

Original Equipment Manufacturer

(OEM) A misleading term for a company which repackages equipment, such as computers, made by other companies. Unlike a value added reseller, an OEM does not necessarily add anything except their name to the product. In some cases though they may integrate components into complete systems. OEM arrangements are often made for marketing reasons.

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(Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and resells them. However, the reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM.

Added Value or None
The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system.

There are numerous companies that specialize in OEM manufacturing and never sell anything under their own brand (see contract manufacturer). Many companies do both. They manufacture and sell retail, but also have a separate OEM division for goods that are private labeled.
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References in periodicals archive ?
The National Information Technology Development Agency (NITDA) has said that Original Equipment Manufacturers (OEMs) in the country sold 608,296 devices in three years.
Headquartered in Berwyn, Pennsylvania, USA, it serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.
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The OEM (original equipment manufacturer) sales also performed well, growing 34 percent to P9.6 billion, as the tuna OEM segment benefited from increased export activity and higher average selling prices.
The bill does not obligate an original equipment manufacturer to divulge a trade secret, or to provide parts that are no longer available.
The company designs, invents, and manufactures computers, software, sensors, and displays for original equipment manufacturers.
LAI International Inc., a supplier of precision components and sub-assemblies for original equipment manufacturers, has signed a $10 million agreement to continue long-term production of large-scale turbine engine components.
"Today's OEM (Original Equipment Manufacturer) faces significant pressure to be responsive to business needs and to reduce costs.
SAP and its long-term technology partner Intel intend to introduce a product offered on Intel Xeon-based systems via original equipment manufacturer and hardware system providers based on SUSE Linux Enterprise from Novell and the database SAP MaxDB.
The Preferred ODM programme enables its members to have exposure to retail channels and major Original Equipment Manufacturer (OEM) brands, according to SigmaTel.
announced it has entered into partnership with the US-based Genuitec for its release of Cosminexus, a universal application platform that utilizes Genuitec's MyEclipse with Original Equipment Manufacturer (OCM) offer.
is an original equipment manufacturer of PCs, laptop computers and servers.

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